According to a report from The Information, Microsoft was considering winding down its Xbox business in 2021. Satya Nadella, the company’s top executive, was faced with the choice of either making significant investments in the platform or simply throwing in the towel. We all know how that turned out, and the investment was significant to say the least – $7 billion for Bethesda and almost $69 billion for Activision Blizzard.
The acquisitions were aimed at strengthening Game Pass and as we have previously reported, Microsoft has set an ambitious goal of reaching over 100 million subscribers by 2030, which at the time of writing means an annual growth rate equivalent to 40% over the next five years. With the latest advertising campaign proclaiming that “everything is an Xbox”, they’ve clearly kicked into high gear to reach their goals, but Game Pass hasn’t been without its challenges.
Whether it’s a smart move to spread its previously exclusive games to all platforms as a long-term strategy remains to be seen, and we’ve recently reported on several big titles that could launch on both PlayStation 5 and the upcoming Switch 2 this year.
Do you think Microsoft made the right choice to invest further in their Xbox business, or should they have exited around 2021?